- Over 59,000 BTC out of the total 141,686 BTC has been redistributed to creditors
- Despite receiving Bitcoin worth nearly $4 billion, creditors are not selling, keeping market pressure low
- Bitcoin’s value has soared by over 8,500% since Mt. Gox’s collapse, yet creditors continue to hold onto their assets
Mt. Gox, which used to be a big player in the Bitcoin exchange market, has started sending out a significant portion of its Bitcoin to creditors. So far, over 41.5% of the total Bitcoin owed has been distributed.
It’s interesting to note that despite receiving almost $4 billion worth of Bitcoin, creditors are holding onto their assets rather than selling them. This suggests a reluctance to sell, which could have an impact on Bitcoin’s market dynamics.
Over 41.5% of Mt. Gox Bitcoin Distributed, Creditors Still Holding
Even though they’ve received nearly $4 billion worth of Bitcoin, which has skyrocketed by over 8,500% in the 10 years since Mt. Gox’s collapse, creditors are still holding onto their assets.
Almost half of the Bitcoin owed to Mt. Gox creditors has been distributed, but after a decade-long wait, many are choosing to keep their coins. Over 41.5%, or 59,000 BTC out of the total 141,686 BTC, has been handed out to creditors of the defunct Mt. Gox exchange.
According to a July 29 report from Glassnode, despite the massive increase in value, Mt. Gox creditors aren’t selling. “Creditors have opted to receive BTC, rather than fiat, a novelty in Japanese bankruptcy law…. Because of this, it is quite likely that only a subset of these distributed coins will actually be sold in the marketplace”
More than $9.4 billion in Bitcoin is still owed to around 127,000 Mt. Gox creditors who have been waiting over 10 years to get their funds back. This could potentially create significant selling pressure that might crash Bitcoin’s price. The news comes a week after Kraken completed the distribution of Mt. Gox Bitcoin to creditors on July 24.
Mt. Gox was a major Bitcoin exchange based in Japan, collapsing in 2014 after a massive hack. Founded in 2010, it once handled more than 70% of all Bitcoin transactions. The hack resulted in the loss of 850,000 BTC, making it one of the largest hacks ever.
Mt. Gox Creditors Aren’t Selling
While Glassnode notes that their theory involves a bit of speculation, data from crypto exchanges suggests Mt. Gox creditors are holding onto their Bitcoin. Specifically, the spot cumulative volume delta (CVD), which tracks the net difference between buying and selling volumes on centralized exchanges, hasn’t shown a significant increase on Kraken following the Mt. Gox Bitcoin distribution.
The report states: “We can observe a slight increase in selling pressure after the distribution. However, it remains well within typical daily ranges.” The lack of selling pressure is surprising, especially given that Bitcoin’s price has surged over 8,500% in the 10 years since Mt. Gox’s collapse.
Bitcoin Investors Are Back to Holding
The current distribution of Bitcoin suggests investors have stopped cashing in on profits and are returning to “hodling,” which in crypto lingo means holding onto their assets. Specifically, the percentage of Bitcoin held by new investors has dropped significantly, similar to what happens near market peaks.
According to Glassnode, this reflects a shift in investor behavior towards hodling: “This situation shows long-term investors spending and selling coins to meet new demand as we approach the ATH of 73k. The rate of decline in these curves has slowed recently, suggesting a gradual return to hodling behavior.”
Conclusions
Mt. Gox Bitcoin distribution is now over 41.5%, but creditors are still holding on to their assets. This, despite Bitcoin’s huge value increase, suggests creditors are making a strategic choice to avoid flooding the market.
If this trend keeps up, it could help keep Bitcoin’s price stable, which would help maintain a level of market equilibrium. We’ll have to wait and see if this holding behavior will affect Bitcoin’s price movements and market sentiment.
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